Car crashes, man, they're like bowling with the gutter balls of life. But getting tangled up with an uninsured driver, well, that's a whole new level of uncool. So, let's roll down this road and talk about the lowdown on uninsured motorist protection, and why you need to dig it.
What's the Deal with Uninsured Motorist Coverage, Man?
Uninsured motorist (UM) and underinsured motorist coverage (UIM) are there to cover your ride and your well-being when you should've been talkin' to the at-fault driver's insurance peeps. There are two flavors here:
Uninsured motorist property damage coverage (UMPD): This takes care of your ride, up to your coverage limit, but in some states, it won't cover your rug or your Creedence.
Uninsured motorist bodily injury coverage (UMBI): This one's for medical bills, lost wages, and the pain and suffering stuff. It's a safety net when you've been run over by life's metaphorical nihilists.
Why You Gotta Dig Uninsured Motorist (UM) Coverage, Dude
A bunch of folks out there are hittin' the road without insurance. According to the Insurance Research Council, one in eight drivers was uninsured in 2019. And the percentage of uninsured cats in your state can be as low as 3.1% (New Jersey) or as high as 29.4% (Mississippi). That's a bummer, man.
Figure 1
Why do you need it? Well, check this out:
Car repairs are pricey, and they keep goin' up thanks to inflation, a lack of talented technicians, technician’s demands for higher pay, and supply-chain hassles.
Medical bills? They're insane.
You still gotta pay your car note, even if the car is a wreck. I'm guessing you'd choose paying a car note and having a repaired vehicle to drive over paying a car note and paying for repairs.
Dude, If I Need Uninsured Motorist Coverage, Why Doesn’t My State Require It?
Don't get all hung up on what someone else thinks should be required. Some states set the bar really low when it comes to coverage.
Let's put it in perspective: A basic bumper repair could set you back two grand, and getting your car's frame back in shape (along with the other repairs) could cost a whopping ten grand. If you're lookin' at repairs to mechanical components, airbags, or your engine, it's like five to seven grand, man.
Even if your state says you gotta have this coverage, the minimums can be super low, and that leaves you with a lot of out-of-pocket expenses if you’re struck by an uninsured dude. Like, if you're in New Jersey and you're cruisin' in a fifty-grand ride, you're in trouble, man. Their minimum for property damage coverage is just five grand. It's like trying to roll a strike after injuring your toe the same day.
I had some free time so I put this chart together this chart to show the bare minimum coverage limits for states that require UM coverage(s). If a state doesn't require something, I didn't list it. If your state requires UM coverage and I missed it, at least you know what you need to know, man.
Getting Your Coverage in Tune
So, here's the deal. Talk to your insurance cats, call your insurer, or even chat with a financial advisor. Figure out not only what you need if you're tangled up with an uninsured motorist, but also what your wallet can handle when it comes to premiums.
You gotta find that balance. Less coverage and higher deductibles mean you're payin' less for insurance, but when the s**t hits the fan, you're forking out more cash out of your own pocket. Flip that script if you go for more coverage and lower deductibles, but that means higher insurance costs. So, find a sweet spot that ties the room together for you.
Stay groovy, man, and keep those wheels rollin'.
References
Insurance Research Council. 2021. One in Eight Drivers Uninsured. [News Release]. https://www.insurance-research.org/sites/default/files/downloads/UM%20NR%20032221.pdf
Farrelly, B., & Farrelly, P. (Director). (1994). Dumb and Dumber [Film]. New Line Cinema.
Figure 1. Map of Uninsured Motorist Rates by State. Adapted from One in Eight Drivers Uninsured by D. Corum, 2021, [News Release]. https://www.insurance-research.org/sites/default/files/downloads/UM%20NR%20032221.pdf. Copyright 2021 by The Institutes.
Luthi, B. (2022, August 17). What’s the Average Cost of an Auto Repair After an Accident? Experian. https://www.experian.com/blogs/ask-experian/average-cost-of-auto-repair-after-accident/
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